Using Surveys of Investment Intentions

Larsen, Jens D.J.; Newton-Smith, Rain

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Using Surveys of Investment Intentions

Bank of England Quarterly Bulletin, Summer 2001

6 Pages Posted: 25 Jul 2005

See all articles by Jens D.J. Larsen

Business investment is an important component of aggregate demand in the UK economy. But it is volatile and difficult to predict. Surveys of investment intentions provide a timely and useful source of information on future investment plans, and can be used to forecast changes in business investment. This article describes a model that uses surveys of investment intentions to forecast business investment, and compares its forecast performance with the business investment equation in the Bank of England's macroeconometric model.

Suggested Citation: Suggested Citation

Larsen, Jens D.J. and Newton-Smith, Rain, Using Surveys of Investment Intentions. Bank of England Quarterly Bulletin, Summer 2001, Available at SSRN: https://ssrn.com/abstract=759624